Kwara's Dwindling Revenue: Harmony Holdings To The Rescue
In the federation allocation formula, Kwara State is number three from the bottom. The meager allocation the state is receiving from the centre, is no doubt a source of headache for the successful and incumbent administrations in the state.
The problem of inadequate allocation from the federation account coupled with the fact that Kwara is a civil service state is retarding the growth and development of the 46 years old state. Though, the successful administrations in the state, especially the democratically elected governments of the late Admiral Mohammed Lawal, the two term Governor Bukola Saraki and the incumbent Governor AbdulFatah Ahmed, strived hard to provide the state with the necessary infrastructures befitting of its status, it's observed that the development could have been more if there are enough funds in the coffer of the state government.
It's therefore in the recognition of the need to look elsewhere for the much needed funds to execute developmental projects and further improve on the wellbeing of the people of the state that the administration of Governor Abdul Fatah Ahmed decided to float Harmony holding company to improve on its internally generated fund.
The state boasts of about 20 companies where it's either the full owner or part owner of such companies. But sadly most of the companies have turned out to be a liability on the state government.
Some of them could not even take care of their staff needs, let alone generate fund into the coffer of the state government.
It was therefore not surprising when the state government decided to put all the 20 companies under the direct supervision of the Harmony companies Ltd to bring about efficiency and return them to profitability. Harmony Holdings Limited is expected to co-ordinate and oversee the day-to-day activities of the various companies in the group by providing them shared services in such areas as technology and communication, financial control, human resources management, business development, strategy and research, internal control, audit and risk management, total quality management and customer service, and treasury and investment services and robust legal services.
The company's vision is to be one of the three government owned holding companies in Nigeria with minimum revenue of N50 billion by 2032.
According to LEADERSHIP Sunday's findings, the company's major objectives include giving the subsidiaries the desired strategic focus and direction, reorganise and restructure all the moribund entities for optimal performance.
It's also expected to institutionalise a performance-based matrix for all companies in line with their respective core competencies and harmonise the operational services within the group through shared services arrangement as a way of achieving efficient cost structure across board. More importantly, the company has been saddled with the onerous task of creating job opportunities for competent professionals and others from the state and as well partner with international and local investors to unlock the potentials presently trapped in such areas as mining, property and tourism within the state.
The company which has commenced business by acquiring the assets and liabilities of the existing 20 government owned commercial entities including those ones that are yet to be operational has the following companies in its fold - Kwara Transport Corporation, Kwara Hotel Limited, Kwara Football Academy, Kwara Investment and Property Development Company Ltd, Harmony Securities Ltd and others.
Speaking with LEADERSHIP Sunday, the Group Managing Director/CEO of the Harmony Holdings, Mr Temitope Daramola disclosed that new investments would be made in either green field or consolidation ofequity holdings in the existing businesses across all sectors of the economy.
"We have already conducted a study and found out that the following sectors are viable for our strategic direction. There include logistics, agro-allied, waste management, retailing, real estate and entertainment", Daramola added.
Daramola is also the chairman of Shonga Farms limited, one of the largest farms in Nigeria and the product of a successful public private partnership.
Speaking at the official commissioning of the corporate headquarters of Harmony Holdings in Ilorin recently, the state governor, Alhaji Abdulfatah Ahmed advanced reasons for the establishment of the company. He said the company would assist his administration in blocking all loop holes and generate revenue for more effective development and growth of the state.
In his address, the Chairman, board of directors of Harmony Holdings Professor Halidu Abubakar said within the short period of the establishment of the company prosperity has been brought into businesses and investment of the state government.
He assured that the goals of establishing the company would be realised.
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